FIIs bought 76,18,330 shares of this LIC-backed multibagger stock under Rs 100; Company gets green signal for OTS proposal from IDFC First Bank

The stock gave multibagger returns of 267.3 per cent from its 52-week low of Rs 25.45 per share.

IDFC First Bank Limited has approved the as communicated via email on August 03, 2024, to the company, PC Jewellers Ltd. The company had previously opted for this settlement to address its outstanding dues. The sanctioned OTS terms include a payment structure comprising both cash and equity components, along with stipulations for the release of securities and mortgaged properties.

Previously, the company had secured OTS approvals from Canara Bank, Bank of Baroda, Indian Overseas Bank and IndusInd Bank per terms encompassing cash payments, equity contributions, and the release of pledged securities and mortgaged properties.

This positive development comes after PC Jeweller's board greenlit the issuance of convertible warrants worth Rs 2,705.14 crore to both promoters and public investors. The funds raised will be used to pay off bank loans (Rs 2,025 crore), address working capital needs (Rs 529.69 crore), manage general corporate expenses (Rs 150 crore), and cover issuance costs (Rs 0.45 crore). Specific details about the warrant allocation between promoters and non-promoters (each receiving 15 crore warrants) will be revealed later.

Today, along with the market in red, shares of PC Jeweller Ltd plunged 1.66 per cent to Rs 93.49 per share from its previous closing of Rs 95.07. The stock’s 52-week high is Rs 98.57 while its 52-week low was Rs 25.45.

About the Company

PC Jeweller Ltd is an Indian company that designs, manufactures, sells and trades gold, platinum, diamond and silver jewellery. They operate across India with multiple brands including Azva, Swarn Dharohar and LoveGold, and even created commemorative medallions for the Cricket World Cup. According to its Quarterly Results (Q4FY24) and annual results (FY24), the company reported a mixed set of numbers.

The company has a market cap of over Rs 4,200 crore. As of June 2024, Life Insurance Corporation of India (LIC) owns a 1.45 per cent stake in the company and FIIs bought 76,18,330 shares and increased their stake to 2.57 per cent compared to 0.93 per cent in March 2024. The stock gave multibagger returns of 267.3 per cent from its 52-week low of Rs 25.45 per share and investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

Also Read: LIC-backed multibagger penny stock under Rs 25 - Could it be the next Suzlon Energy? Board announces rights issue for business expansion; target for 1 GW capacity!